Fair points. I do agree the intention at the time of merger...

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gamblore

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10/01/20

20:41

Post #: 42327781
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Originally posted by bridog ↑

Thanks for elaborating, gamblore, I can see where you are coming from.

As you point out, the effect of Capital in selling out shares picked up in two CR's has helped depress the share price. It's at least conceivable that they supported the cash raisings after lobbying from Ron Lauder, and if that was the reason, and they wouldn't otherwise have bought them, then that is the reason to get rid of them.

There doesn't need to be any conspiracy about that, had Capital not subscribed, the capital raised would be US$29m less than actual, without doubt resulting in the need for a further CR at likely an even a lower price.

Your point though, that Ron has somehow orchestrated all this to reduce his cost per share doesn't stack up. Any of us have benefited from the same thing if we have been holders for long enough. It is clear by the options granted with a 90c strike rate that the belief was that the business would progress a lot faster than it worked out and that future CRs would be 80/90c range.

We know that didn't work out.

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Originally posted by stockrock ↑

I am pretty sure Ron got what he wanted when the merger went through .. that was the opportune time for negotiations to happen behind closed doors and deals struck and structures put in place to give those in power exactly what they wanted. There was and is no need to play games on the open market.. too many risks and billionaires don't become who they are by taking those types of risks.

It also makes no sense that Ron would put in US$20m at 85 cents per shares on merger, to only manipulate the market with his mates to get a lower average price... he could easily have argued to have injected that capital at a discount.. rather than at near market prices.

When I take a look back at the merger presentations back in mid 2017... their objectives was to become EBITDA positive in 2019.

Two and a half years on .. they will miss that by a handful of days... that tells me that they have in substance delivered what they set out to do on merger ... Q1 2020 will be the start of positive EBITDA Qtrs ... positive cash flow quarters will follow in due course.. and the rest (including the present) will be history.

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Fair points. I do agree the intention at the time of merger was/is as you have both said. Granted everyone has also had the opportunity to average down, I just imagine many retail holders have slightly tighter capital constraints than Mr Lauder.

2+ years later, I can't help but maintain a little bit of healthy scepticism watching the events unfold. Whether I'm right or wrong, like @frostieshake, either scenario strengthens my resolve.

Very much appreciate the discussion here. FLC is one of the best forums going around; (touch wood) not only avoiding remedial toxic immaturity, but with constant mind blowing research contributions.

Last edited by gamblore: 10/01/20

FLC Price at posting: 45.5¢ Sentiment: Buy Disclosure: Held
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